An IP address is your Internet Protocol address and how computers and devices communicate with each other on the internet.
VoIP isn’t actually all that new. Telephony has relied on digital lines to carry phone calls since the late 90s. VoIP is a cost-effective way to handle an unlimited number of calls.
If you have an internet connection, you call anyone without the need for local phone service. VoIP solutions work on any computer because it’s built upon many years of open standards.
VoIP service providers do more than establish calls. They perform routing of outgoing and incoming calls through existing telephone networks, unlike landlines and cell phones, which depend on the Public Switched Telephone Network (PSTN).
Traditional telephones use analog lines to carry voice signals. If you want to make calls, you have to have extra wiring installed.
Many businesses rely on specialized hardware for phone service. This equipment is known as a Private Branch Exchange (PBX). It connects internal phone extensions to the public telephone network. PBXs are generally quite costly to set up and maintain unlike cost-effective VoIP systems.